Barclays cuts 9,000 UK jobs in ‘bold’ new vision

In a market update last week, the group’s chief executive, Antony Jenkins, revealed plans to reposition, simplify and rebalance the business in a bid to improve returns significantly.

The clean-up operation will see the bank hive off assets into a ‘bad bank’ that plans to run down or sell up to £115bn worth of non-core operations, including £90bn of investment bank assets, all £16bn of its European retail banking assets and £9bn of corporate, Barclaycard and wealth assets.

Mr Jenkins said: “This is a bold simplification of Barclays. We will be a focused, international bank, operating only in areas where we have capability, scale and competitive advantage.

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“In the future, Barclays will be leaner, stronger, much better balanced and well positioned to deliver lower volatility, higher returns, and growth.”

Industry view

Louise Cooper, CFA, founder of London-based Cooper City, said: “Although Barclay’s profit number looks large on an absolute basis, relative to the capital employed to generate it, profitability is still way too low”.

Barclays: The new look

Barclays’ former ‘wealth and investment management’ division will now be housed in the bank’s ‘personal and corporate banking’ division.

The other divisions are:

* Barclaycard: a “high-returning” business with “strong, diversified international growth potential.”

* Africa banking: a longer-term growth business with “distinct competitive advantages.”

* Investment bank: an origination-led and returns-focused business, “delivering banking, equities, credit and certain macro products in a more capital-efficient way.”